IOU

Lawmakers in California on Tuesday agreed on a plan to close a $26 billion budget gap, ending weeks of stalemate that left the state’s chief accountant having to issue IOUs to creditors. Ray Suarez reports. Continue reading →

Paul Solman: Questions keep coming in about the likelihood and consequences of a California default on its bonds. One unexpected result might be anger for the ages. Here’s Lake Poet William Wordsworth on the 1842 bond default of Pennsylvania, which … Continue reading →

After failing to plug a $26 billion budget gap, California has begun sending out IOUs to cover its costs, but most banks are refusing to accept them. Spencer Michels reports on the ongoing financial crisis in the Golden State. Continue reading →

Question: Is California printing its own money? Paul Solman: Funny you should ask. The State of California Franchise Tax Board website currently features this statement: “We will accept registered warrants…towards the payment of tax liabilities.” State taxes, of course, not … Continue reading →